BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 1500
          Author:   Lieu (D)
          Amended:  7/14/09 in Senate
          Vote:     21

           
           SENATE TRANSPORTATION & HOUSING COMM  :  9-1, 7/7/09
          AYES:  Lowenthal, Ashburn, DeSaulnier, Harman,  
            Hollingsworth, Kehoe, Pavley, Simitian, Wolk
          NOES:  Huff
          NO VOTE RECORDED:  Oropeza

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8 

           ASSEMBLY FLOOR  :  46-31, 6/3/09 - See last page for vote


           SUBJECT  :    High-occupancy lanes:  low-emission vehicles

           SOURCE  :     California Natural Gas Vehicle Coalition


           DIGEST :    This bill extends the sunset date, from January  
          1, 2011 to January 1, 2014, on the law that allows certain  
          low-emission vehicles to access High-occupancy vehicle  
          (HOV) lanes.

           ANALYSIS :    In 1999, the Legislature passed and the  
          governor signed AB 71 (Cunneen), Chapter 330, to allow the  
          following low-emission vehicles to access HOV lanes,  
          regardless of vehicle occupancy:

          1.A vehicle that meets the state's super ultra-low emission  
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            vehicle (SULEV) standard for exhaust emissions and the  
            federal inherently low-emission vehicle (ILEV) standard  
            for evaporative emissions (e.g., all-electric vehicles  
            such as Tesla or the RAV 4 EV).

          2.A vehicle that was produced during the 2004 model year or  
            earlier that meets the state's ultra-low emission vehicle  
            (ULEV) standard for exhaust emissions and the federal  
            ILEV standard (e.g., Honda Civic CNG).

          To differentiate these vehicles, the Department of Motor  
          Vehicles (DMV) issues white stickers to be affixed on the  
          vehicle.  There is no limit on the number of these vehicles  
          that may be issued white stickers.  To date, DMV has issued  
          9,099 sets of white stickers.  White-stickered vehicles are  
          eligible for free or reduce-passage toll rates on Bay Area  
          toll bridges, regardless of their occupancy, if those rates  
          are offered to high-occupancy vehicles.

          In 2004, AB 2628 (Pavley), Chapter 725, allowed the  
          following hybrid vehicles to access HOV lanes, pending  
          approval by the federal government:

          1.A hybrid vehicle or an alternative fuel vehicle that  
            meets the state's advanced technology partial  
            zero-emission standard (AT PZEV) standard for criteria  
            pollutant emissions and has a 45 miles per gallon (mpg)  
            or greater fuel economy highway rating. 

          2.A hybrid vehicle that was produced during the 2004 model  
            year or earlier that has a 45 mpg or greater fuel economy  
            highway rating and meets the state's ULEV, SULEV, or  
            partial zero-emission vehicle (PZEV) standards. 

          The DMV issues these vehicles yellow stickers.  The number  
          of vehicles that may be issued yellow stickers was  
          ultimately capped at 85,000, a limit which was reached in  
          2007.  Yellow-stickered vehicles are not eligible for free  
          or reduced-passage toll rates on Bay Area toll bridges.

          The authority to access HOV lanes expires for all four  
          types of vehicles on January 1, 2011. 

          Existing law requires the California Department of  

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          Transportation (Caltrans) to assess, according to a  
          specified timeframe, whether HOV lanes have experienced  
          significant degradation due to access by hybrid vehicles  
          with yellow stickers.  Caltrans is authorized to restrict  
          single-occupant vehicles with either white or yellow  
          stickers from accessing segments of HOV lanes during  
          periods of peak congestion if it finds that the lane has a  
          specified level of service, the operation of these vehicles  
          will significantly increase congestion, and it is not  
          feasible to alleviate congestion by other means.  

          This bill extends the sunset date, from January 1, 2011 to  
          January 1, 2014, on the law that requires DMV to issue  
          white stickers to eligible vehicles so that those vehicles  
          may access HOV lanes.  

           Background
           
          The Federal Highways Administration (FHWA) granted  
          conditional approval to allow hybrid vehicles in HOV lanes,  
          as authorized by AB 2628 (Pavley), in April 2006.  FHWA  
          required Caltrans to monitor and report on the performance  
          of HOV lanes and to take steps to address degradation  
          (i.e., congestion), if necessary.  

          In July 2006, after 50,000 yellow stickers were issued to  
          hybrid vehicles under the program, Caltrans assessed  
          congestion in the HOV lanes using both the state and  
          federal standards of performance.  Under the state  
          standard, Caltrans found that the number of congested HOV  
          lane segments increased from 7 to 12 percent.  Under the  
          federal standard, Caltrans found that approximately 46  
          percent of HOV lane segments operated under degraded  
          conditions.  While the increased congestion could not be  
          attributed solely to single-occupant hybrid vehicles  
          accessing the lanes, FHWA nonetheless asserted that these  
          vehicles did not have to be the cause of degradation for  
          Caltrans to take action to reduce HOV lane congestion and  
          requested that Caltrans develop a plan for improving the  
          performance of HOV lanes.

          Caltrans submitted the "California High Occupancy Vehicle  
          Lane Degradation Reduction Plan" to FHWA in August 2007.   
          The plan outlines short- and long-term measures to improve  

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          HOV lane performance, including increased enforcement,  
          improved system management, infrastructure improvements,  
          public education, and, if necessary, a prohibition of  
          single-occupant hybrid vehicles from accessing the most  
          congested segments of the HOV-lane network.  

          Following the submittal of that plan, Caltrans updated its  
          analysis of HOV lane degradation and submitted a  
          supplemental report to FHWA in September 2008.  This  
          updated analysis found that, based on the federal standard,  
          congestion increased on HOV lanes from 46 percent to 54  
          percent.  Given the growth in both population and number of  
          registered vehicles, degradation is only likely to worsen.   



          There is much activity occurring with regard to allowing  
          low-emission vehicles to access HOV lanes.  Federal law  
          governing HOV lane access is contained in the  
          transportation act known as SAFETEA-LU, which is set to  
          expire on September 30th of this year.  A draft of the new  
          federal transportation bill has just been released and it  
          extends the current access provisions until September 30,  
          2015.  Air quality experts consider the federal ILEV  
          standard outdated, and it is conceivable that the emission  
          standard applicable for HOV lane access may change as the  
          bill is marked up and moves through Congress.  

          Regardless of whether there is a change to the federal  
          standard, California's current standard for allowing  
          hybrids to access HOV lanes is out of sync with the federal  
          law and the United States Environmental Protection Agency  
          has urged Caltrans and the California Air Resources Board  
          to better align its standards with those established in  
          federal law.  

          Finally, in addition to General Motors, Ford and Toyota  
          have been pursuing their own proposals to incentivize  
          specific vehicles by providing HOV lane access. Vehicle  
          technologies are undergoing rapid change and increasingly  
          cleaner vehicles will become available in the coming years.

           Related Legislation  


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          SB 535 (Yee), in its current form, extends the sunset date,  
          from January 1, 2011 to January 1, 2015, to allow certain  
          low-emission vehicles to use HOV lanes, regardless of  
          vehicle occupancy, but maintains the January 1, 2011 sunset  
          date for hybrid vehicles.  

          AB 1502 (Eng) extends the sunset date, from January 1, 2011  
          to January 1, 2017, to allow certain low-emission vehicles  
          to use HOV lanes, regardless of vehicle occupancy, but  
          maintains the January 1, 2011 sunset date for hybrid  
          vehicles.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/17/09)

          California Natural Gas Vehicle Coalition (source) 

           OPPOSITION  :    (Verified  8/17/09)

          Alameda County Congestion Management Agency

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          access to HOV lanes by single-occupancy vehicles that meet  
          the federal ILEV standard is an effective way to encourage  
          the purchase and lease of low-polluting alternative fuel  
          vehicles, particularly in heavily urbanized areas where air  
          pollution tends to be the worst and traffic congestion is  
          greatest.  The state thus achieves two important and  
          complementary goals:  to reduce vehicular air pollution and  
          reduce petroleum consumption.  

          Approximately 25,000 CNG vehicles operate in California,  
          owned by individuals, local governments, and private fleets  
          such as taxi cabs and shuttle vans.  Single-occupancy  
          access to HOV lanes is a strong non-monetary incentive for  
          the purchase of low emission, alternative fuel vehicles.  


           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Beall, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer,  

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            Fong, Fuentes, Furutani, Galgiani, Hall, Hayashi,  
            Hernandez, Hill, Huffman, Jones, Krekorian, Lieu, Bonnie  
            Lowenthal, Ma, Mendoza, Monning, Nava, John A. Perez, V.  
            Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana,  
            Swanson, Torlakson, Torres, Torrico, Bass
          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Blakeslee, Conway, Cook, DeVore, Duvall, Emmerson,  
            Fletcher, Fuller, Gaines, Garrick, Gilmore, Hagman,  
            Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande,  
            Niello, Nielsen, Silva, Skinner, Smyth, Audra Strickland,  
            Tran, Villines
          NO VOTE RECORDED:  Block, Solorio, Yamada


          JA:nl  8/18/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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